Your Payroll Administration – Q2.2025

We welcome spring with an overview of the key developments that impact your payroll administration and HR policies.

Holiday Pay

With the first rays of spring sunshine, we slowly start dreaming of summer holidays—especially as many employees receive their double holiday pay in this quarter.

For white-collar workers, double holiday pay amounts to 92% of their gross monthly salary.

For blue-collar workers, holiday pay is paid via the holiday fund and equals 15,38% of their gross annual salary for the holiday service year, calculated at 108%. Employers contribute annually to the social security (NSSO) for this, at a rate of 10,27% of their workers’ gross wages of the previous year. The payment request is sent out in March, with a final payment deadline of April 30th.

The holiday pay itself is typically paid out in May or June.

Sectoral allowances

Various sectors provide for the payment of certain sectoral allowances in the second quarter.

Joint Committee 200 – Employees

In Joint Committee 200, an annual sectoral bonus must be paid in June. In 2025, the bonus amounts to a maximum of €323,69 gross, provided that the employee has worked a full reference year (from June 1, 2024, to May 31, 2025) on a full-time basis. For part-time or incomplete reference periods, the amount is prorated accordingly.

Additionally, eco vouchers worth €250, which allow employees to purchase eco-friendly products and services, must also be granted in June. These vouchers are exempt from taxes and social security contributions under certain conditions, making them an attractive benefit for both employees and employers.

However, within your company, it may be possible that the eco vouchers have been replaced by an equivalent benefit.

Although the new government agreement includes a plan to abolish eco vouchers, the legal obligation remains in place for now.

Joint Committee 124 – Construction

Employees in the construction sector are also entitled to eco vouchers. Employers must grant a maximum of €115 in eco vouchers to their employees in April, provided that the employee has worked full-time during the reference period from April 1, 2024, to March 31, 2025. The amount of eco vouchers is prorated in the case of part-time employment or an incomplete employment period.

Here too, the benefit may have been converted into an equivalent alternative.

Paritair comité 201 – Independent Retailer

Employees in Joint Committee 201 are granted eco vouchers worth €250 annually (for full-time employment during the reference period April 1, 2024, to March 31, 2025), to be paid in April. The employer can also choose to provide a gross bonus of €188 to their employees instead of eco vouchers.

Note that students employed in this sector are not entitled to the payment of eco vouchers or the gross bonus.

Don’t forget the deadline for your CAO 90 bonus plan!

If you want to motivate and reward your employees in 2025 with a tax-efficient bonus, a CAO 90 bonus plan is an interesting option. This plan allows you to link collective objectives to a non-recurring, performance-based bonus, with favorable social security and tax treatment.
For a bonus plan with a reference period of one year (January 1 – December 31, 2025), your plan must be submitted to the authorities by April 30, 2025 at the latest. For a shorter reference period, the deadline is 1/3 of that period.

Don’t wait until the last day to start working on this: your employees need time to provide feedback on your plan. When drafting a CAO 90 bonus plan, there are several important conditions to consider:

• The bonus is collective and applies to all employees or a specific group.
• The objectives must be objective, measurable and uncertain at the time of implementation
• The maximum bonus for 2025 is €4,164 gross (€3,622 net).

Our team is ready to assist you with the creation, optimization, and timely submission of your bonus plan. Feel free to contact us for more information.

Wage norm 2025-2026 

The Central Council for Business (CCB) has set the wage margin for 2025-2026 at 0%. This means that, in 2025-2026, wages, aside from automatic indexation and scale increases, may not increase compared to 2023-2024. This is intended to keep labor costs in Belgium competitive in comparison to neighboring countries.

Increase in home office allowance

Starting from March 1, 2025, the fixed home office allowance will increase from €154.74 to €157.83 per month. This allowance is intended to cover the costs that employees incur when working from home on a regular and structured basis, such as expenses for electricity, heating, and small office supplies.

To be eligible for this allowance, employees must work from home for an average of at least one workday per week on a monthly basis. This applies to both part-time and full-time employees, without prorating. The amount of €157.83 is the maximum allowable, and a smaller amount may also be granted.

It is important to note that this allowance cannot be combined with other reimbursements for the same costs. However, it is possible to provide separate allowances for other specific home office expenses, such as the use of a personal internet connection or personal computer and peripherals.

The government coalition agreement – Key takeaways

After months of negotiations, the new government has finally taken office. Their coalition agreement contains numerous measures that will undeniably have a significant impact on both labor law and your HR policy.

We have compiled a list of the most notable measures by theme, so you can immediately see where the government intends to place its emphasis. Please note that the list of measures is more extensive than what is mentioned here.

Wage formation and labor costs

Work must become more attractive

According to the new government, the difference between working and not working should be increased. The following measures are intended to achieve this:

• The difference between working and not working will be at least €500.
• The tax-free allowances will be increased, and the Special Contribution to Social Security will be reduced.
• The social work bonus will be strengthened.
• The gross wage must be equal to the net wage for minimum wages.
• The GGMMI (national minimum wage) will be increased by €35 in both 2026 and 2028, with no additional costs for employers.
• Automatic indexing and the wage norm law will remain in place, but social partners are tasked with providing recommendations for a possible reform by December 31, 2026.
• The 2001 law regarding employee participation will be modernized.

Labor costs must decrease

To strengthen the competitive position of Belgian companies, the government aims to reduce labor costs for employees. Below are some of the measures included in the coalition agreement:

• Employer social security contributions (NSSO) will be capped.
• The target reduction for initial hires will be reformed: for the first employee, the contribution reduction will remain unlimited in duration but will decrease to €2,000 per quarter. For the second to fifth employee, a contribution reduction of €1,000 per quarter will apply for the first three years.
• The temporary tax exemption for the transfer of social security contributions for shift work (shift work bis) will be replaced by a permanent measure that could provide greater clarity and legal certainty.
• The tax exemption for social security contributions for scientific research (R&D) will be clarified, with adjustments to the scope of application for universities, colleges, university hospitals, and research funds.

Changes regarding extralegal benefits

In terms of extralegal benefits, the government aims to implement several measures to strengthen purchasing power as well as simplify their allocation:

• A broader transition period for hybrid company cars will be established. The deduction percentages will be adjusted: until the end of 2027, it will remain at 75%, dropping to 65% in 2028 and 57.5% in 2029. The fuel costs for hybrid company cars will remain 50% deductible until the end of 2027.
• In addition, collective bonus systems (CAO 90, profit-sharing bonuses, etc.) will be simplified and harmonized.
• Meal vouchers will be increased by two increments of €2 during the upcoming legislative term (up to a maximum of €12). The deductibility will also be increased. In exchange for this, eco-vouchers and sports and culture vouchers will be phased out.
• Copyright royalties will be extended to digital professions, including the IT sector.
• The system of flexible remuneration (so-called cafeteria plans) will receive a legal basis, and the gross wage exchange will be limited to a maximum of 20% of the annual gross salary.
• Finally, the existing mobility budget will be reformed into a mobility budget for everyone, regardless of whether the employee is eligible for a company car.

Further Flexibilization of Employment

Furthermore, the new government aims to promote work-life balance. Below is an overview of the key points:

• Continuation of the flexibilization of working hours and work time through individualized schedules, the abolition of the minimum weekly working hours of 1/3, and the removal of the ban on night work.
• An increase in voluntary overtime to 360 hours per year, and even 450 hours for the hospitality sector (JC 302).
• Standard overtime will be able to be performed in a tax-friendly manner for up to 180 hours.
• Introduction of family credits, whereby each child receives a “backpack” of leave rights in connection with birth and later care, and the scope of individuals who can benefit from these rights will be expanded.
• Expansion of flexi-jobs and an increase in the number of hours for student labor.
• Research into telecommuting, specifically whether hours worked on trains will soon be considered as work time?

Incapacity for work

In addition to the above points, the new government also aims to keep and get more people into employment to increase the employment rate in Belgium. The government notes that there is still an increase in the number of employees with long-term sickness and seeks to get more people back to work, based on the following proposals:

• Active absenteeism policies and accelerated reintegration pathways to more closely monitor employees with disabilities, with possible sanctions for employers if they do not comply.
• Increased accountability for both employers and employees to promote reintegration.
• Employers will pay 30% of the sick leave benefits during the first two months of disability after the period of guaranteed wages. This arrangement will replace the current system related to the accountability contribution. These rules will not apply to small and medium-sized enterprises (SMEs).
• Employees can be penalized (loss of benefits or guaranteed wages) for not adequately participating in the reintegration process.
• Rules regarding relapses will be further tightened; employees will only be entitled to guaranteed wages after 8 weeks in the event of a relapse. The current arrangement allows for 14 days, unless the employee can demonstrate that the disability is due to a different illness.

Easing of dismissal rules

More than ten years after the abolition of the probationary period, this abolition is being reevaluated. By December 31, 2025, the probationary period will be reintroduced. This will allow both employers and employees to terminate the employment contract during the first six months of employment, with a notice period of only one week.

The coalition agreement provides for the activation of the “severance pay,” which will be capped at a maximum of 52 weeks for newly hired employees. This measure aims to create a better balance between solid social protection and an attractive investment climate. Specifically, this means that for new hires, the notice periods and corresponding severance compensations will be limited to 52 weeks. This corresponds to an seniority of approximately 17 years within the same company.

Currently, an employee who resigns is excluded from unemployment benefits for 4 to 52 weeks, as they are not considered ‘involuntarily unemployed.’ Additionally, the coalition agreement stipulates that employees with at least 10 years of service can resign once during their career and will be entitled to unemployment benefits for up to six months. This duration can be extended once by 6 months if the employee successfully completes training for a shortage occupation, starting in the first quarter of the unemployment benefit period.

In line with the new government’s ambition to keep people working longer, the new intake into the SWT system (the former early retirement scheme) will be halted. Given that the coalition agreement raises uncertainties in this area, particularly regarding ongoing notice periods and the application of existing collective labor agreements from the social partners, the inter-professional social partners in the Group of 10 have issued an advisory opinion on this matter. The social partners are requesting the new government to respect the existing agreements regarding the SWT (system of unemployment with company supplement). This concerns both the deviating systems of SWT (heavy occupations and long careers) and the general SWT system.

What does this mean concretely?

For the deviating systems of SWT (collective labor agreements no. 143, 166, 167, and 169), the social partners have formulated the following requests:

• Regarding the right to SWT, the social partners request that the collective labor agreements be respected so that employees who are dismissed by June 30, 2025, retain their right to SWT;
• Employees who wish to utilize SWT must meet the conditions of the respective SWT system (such as age and seniority) by June 30, 2025, at the latest;
• Concerning adjusted availability (CLA no. 169), the social partners request that the exemption from adjusted availability be extended until December 31, 2026, for employees who are dismissed before July 1, 2025.

For the general SWT system (CLA no. 17), the social partners ask that employees who are dismissed before April 1, 2025, and who meet the age and seniority conditions on June 30, 2025, can continue to benefit from the SWT regime.

Social fraud

Furthermore, regarding penalties, the minimum fine will be increased to 50% of the maximum fine in cases of aggravating circumstances, such as deliberately committing violations. Additionally, the surcharges will be raised from 70 to 90, meaning that both criminal and administrative fines will increase.

It is also provided that companies guilty of social dumping and that do not contribute to the system will not be allowed to enjoy the same benefits as employers who comply with the rules. There will also be an investigation into how foreign companies can be held accountable for these practices.

Finally, the government aims to increase the number of inspections in conjunction with improved international cooperation.

Federal Learning Account vs Coalition Agreement

The strong statement regarding the possible abolition of the Federal Learning Account (FLA), as leaked from Bart De Wever’s supernote, seems set to become a reality according to the new coalition agreement.

The Social Committee had earlier decided in Parliament to postpone the introduction of the Federal Learning Account until April 1, 2025; a legislative proposal has since been submitted to further delay it until September 1, 2025.

As mentioned, the new coalition agreement provides for the elimination of this tool and is exploring a less administratively burdensome system. Nevertheless, the obligation to register individual training rights and completed training for your company remains in place. Therefore, you may consider temporarily not complying with the FLA requirements and instead maintaining an internal registration system to track the training rights and completed training of your employees.

Special leave for religious and secular celebrations

Employees are entitled to one day of special leave when their child or the child of their spouse/partner makes their Solemn communion or participates in the Secular Youth Ceremony. Please note that this right applies only to these two events and does not extend to a First Communion or spring celebration. For part-time employees, the granting of this leave is specifically dependent on their work and inactivity days.

If the day of the Solemn Communion or the Secular Youth Festival falls on a Sunday, public holiday, or regular day of inactivity, the employee may be absent on the regular workday immediately preceding or following that date.

Employees wishing to take a day of special leave must notify their employer in advance and may be required to provide proof. However, exceptions may be possible on a sectoral basis.

End of the Relance Overtime: What Does the Coalition Agreement Mean for Voluntary Overtime?

Until June 30, 2025, your employees can perform 120 regular voluntary overtime hours and 120 relance overtime hours, with a maximum of 220 hours combined for both systems. For performing these overtime hours, written confirmation from the employee is required every six months.

With the end of the measure in sight, the governing parties decided to not only revive the system of voluntary overtime but also to substantially expand it. In the future, employees would be able to perform 240 voluntary overtime hours (without overtime pay, without compensatory rest, and with gross equal to net), resulting in a total of 360 voluntary overtime hours for all sectors. For the hospitality sector (JC 302), this maximum is raised to 450 hours, of which 360 hours can be completed without mandatory overtime pay.

*Note: The coalition agreement does not yet have legal binding force. As long as the plans in this agreement have not been converted into laws or regulations, the opportunity for employees to perform 120 voluntary relance overtime hours will expire on June 30, 2025. We will keep you informed as soon as the final rules are published.

Public holidays and bridge days in het second quarter

In the second quarter of 2025, the following public holidays should be taken into account:

• Easter Monday: Monday, April 21
• Labor Day: Thursday, May 1
• Ascension Day: Thursday, May 29
• Pentecost Monday: Monday, June 9

Since these holidays do not fall on a Sunday and typically do not occur on a day when work is usually not performed (usually Saturday), these public holidays should not need to be replaced and can be observed on the public holiday itself.

An exception to the above principle applies to the public holiday of All Saints’ Day, which falls on Saturday, November 1, 2025. This holiday must, in principle, be replaced by the next working day, Monday, November 3, 2025, unless another replacement day has been agreed upon before December 15 of the previous year. This could be a bridge day, such as Friday, May 2, or Friday, May 30, 2025.

Additionally, companies have the option to establish and communicate their collective closure days, including bridge days, to employees before December 31 of the previous year. At Van Havermaet, this is the case, and a bridge day has been scheduled on May 30, 2025, due to Ascension Day. Consequently, our office will be closed on May 29 and 30, 2025.

Expected Wage Indexations

At the start of the new quarter, an indexing will take place in the construction sector (JC 124) with an expected increase of 1.03707%.

Additionally, it is anticipated that on April 1, there will be an indexing in the Joint Committee for Independent Retail (JC 201) and the Chemical Industry (JC 116 and 207) of 2%

Adjustment of Mileage Allowance

From April 1, 2025, to June 30, 2025, the maximum tax-exempt amount for the quarterly indexed mileage allowance for commuting and professional travel will be €0.4320 per kilometer. This is an increase from the previous quarter’s amount of €0.4290 per kilometer.

If your sector operates with the annually indexed mileage allowance, you should take the annual allowance into account, and therefore, nothing will change for you. The annually indexed mileage allowance (valid from July 1, 2024, to June 30, 2025) is €0.4415 per kilometer.